EIC Advance setup and calculations

Alerts and notices
Leave feedback

Internal Employees: Submit feedback

Contact information (optional):

Leave this blank:

Please tell us how we can make this information more helpful.


Characters left:

Important reminder!

Licenses for Payroll CS, Trial Balance CS, and Write-Up CS (but not Engagement CS) permanently expired on March 1, 2017. CSA will not include 2017 tax rates or payroll forms, so, for 2017 and beyond, you will need to process payroll in another application. We recommend Accounting CS Payroll and myPay Solutions. For more information, see the following topics.

Important note regarding after-the-fact payroll clients: Because the Payroll Compliance module does not utilize tax tables or payroll frequencies, the EIC advance payroll items are not designed to calculate for after-the-fact payroll. Therefore, to set up an EIC advance for an employee of an after-the-fact payroll client, we recommended that you use the default item called "EIC Advance" and then manually enter the amount each pay period.

For payroll checks dated prior to January 1, 2011: Payroll CS automatically calculates the earned income credit advance for employees who have an EIC advance pay item.

The amount of earned income credit advance an employee receives is based on the employee's gross pay and the earned income credit advance payment table selected. Payroll CS includes four default EIC pay items (EIC Advance; EIC Adv-Both Spouse; EIC Adv-One Spouse; and EIC Adv-Single/HOH). In addition, you can add your own EIC pay item as follows:

  1. Choose Setup > System Configuration > Pay Items.
  2. Click the Add button to add a new pay item.
  3. Click the Special Information tab, and select EIC Advance from the drop-down list in the Special type field.
  4. Select the appropriate EIC table from the drop-down list in the EIC table field.

When you enter check information for an employee who is set up for the earned income credit advance (for payroll checks dated prior to January 1, 2011), Payroll CS automatically calculates the amount of the earned income credit and enters the amount in the EIC Advance pay item. If a check causes the employee's year-to-date pay to exceed the amount entered in the EIC adv. income limit field of the Setup > System Configuration > Payroll Tax Information > Federal > Federal Tax Information dialog, a warning message alerts you during data entry and the EIC advance will no longer calculate.

Note: If you use the earned income credit advance feature, you will also need to make sure the appropriate tables and the income limit amount are entered in the Federal Tax Information dialog. To open that dialog choose Setup > System Configuration > Payroll Tax Information > Federal > Federal Tax Information.

Payroll CS does not include earned income credit advance payments in the gross pay amount when calculating deductions for a payroll check.

Top of page

Share This